Bitcoin blows past $15,000, adding $2,000 in less than 12 hours

Source: New York Post

Bitcoin rocketed above $15,000 for the first time on Thursday, after adding more than $2,000 to its price in fewer than 12 hours. Bitcoin, the world’s biggest and best-known cryptocurrency, has seen a more than fifteenfold surge in its value since the start of the year.

It climbed to as high as $15,344 on the Luxembourg-based Bitstamp exchange around 9:20 a.m. ET, leaving it up more than 12 percent on the day, having traded just above $13,000 12 hours earlier. Many market-watchers said the launch this weekend of bitcoin futures by CBOE, one of the world’s biggest derivatives exchanges, was helping drive up the price on expectations it would draw more investors to the market.

“Futures trading will mean more demand…and is a form of ratification of the underlying tech – bitcoin and cryptocurrencies in general. They are now on the main stage,” said Charles Hayter, founder of cryptocurrency data analysis firm Cryptocompare. But some are warning that the launch of bitcoin futures, which will allow investors to take speculative “short” positions on the cryptocurrency, as well as “long” positions, could cause even greater volatility.

“Aggressive traders, such as hedge funds and algorithm-driven funds, (will be able) to use this futures market to enter bitcoin trading with high levels of liquidity for aggressive short-selling and knock the prices really low,” said Think Markets analyst Naeem Aslam.

4. If you own any, sell

6. Own what exactly? This is going to blow up sooner than later.

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.

10. Unlike other commodities, you can't manufacture stuff with bitcoin

bitcoin owners just have to hope someone else will accept it for purchases or buy it from them with real currency. It's value is entirely dependent on other people wanting it. And there will be limits to that.